South Bow Reports First-quarter 2026 Results and Declares Dividend

About this update from South Bow Corp

[{"type":"text","content":"South Bow Reports First-quarter 2026 Results and Declares Dividend\nCALGARY, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- South Bow Corp. (TSX & NYSE: SOBO) (South Bow or the Company) reports its first-quarter 2026 financial and operational results. Unless otherwise noted, all financial figures in this news release are presented in U.S. dollars. Highlights Safety and operational performance Recorded first-quarter 2026 average throughput of approximately 616,000 barrels per day (bbl/d) on the Keystone Pipeline due to strong operational performance, including a System Operating Factor (SOF) of 95%. Throughput on the U.S. Gulf Coast segment of the Keystone Pipeline System averaged approximately 709,000 bbl/d.As disclosed on March 5, 2026, placed the Blackrod Connection Project into commercial service during the first quarter of 2026, on schedule, on budget, and with a zero recordable case rate. Cash flows are expected to increase throughout the second half of 2026 and into 2027, with the project expected to contribute approximately $10 million in normalized earnings before interest, income taxes, depreciation, and amortization (normalized EBITDA)1 in 2026.Progressed remedial actions relating to the Milepost 171 (MP-171) incident, including completing 11 in-line inspections and 76 integrity digs to date, and continuing to work closely with the Company's in-line inspection technology vendors. As South Bow conducts its remedial work, findings are being incorporated into the Company's remedial work plan and ongoing programs to enhance system integrity and ensure safe operations. Financial performance Delivered stable financial results in the first quarter of 2026 amid ongoing geopolitical and market uncertainty. South Bow generated revenue of $491 million, and reported net income of $77 million ($0.37/share), normalized EBITDA of $257 million, and distributable cash flow1 of $168 million. Normalized EBITDA of $257 million increased by $5 million from the fourth quarter of 2025. This increase was primarily due to higher contributions from the Marketing segment, and was partially offset by lower normalized EBITDA in the Keystone Pipeline System segment, reflecting reduced maintenance activities.Distributable cash flow of $168 million increased by $19 million from the fourth quarter of 2025, driven primarily by lower current taxes. Maint...

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